AP Microeconomics / Unit 1: Basic Economic Concepts
1.1 Scarcity
Notes
Scarcity forces choices because resources (land, labor, capital, entrepreneurship) are limited and wants are not.
- Microeconomics studies individual households, firms and markets.
- Positive vs normative statements.
Practice
Which is a microeconomic question?
One market.
"Higher gas prices reduce how much people drive" is:
Testable.
Scarcity means:
Choices have costs.
Ready for more? Take the Unit 1 test.